97-year-old aerospace manufacturer files Chapter 11 bankruptcy

Despite accumulation rates successful the aerospace manufacture climbing modestly successful 2025, according to a Deloitte report, definite manufacturers, specified arsenic Magellan Aerospace Middletown, are inactive struggling and filing for bankruptcy.

Iconic aerospace products shaper Magellan Aerospace Middletown Inc. filed for Chapter 11 bankruptcy to stabilize its business, operations, and finances and find if capable changes volition let it to amended vie successful the marketplace and proceed arsenic a stand-alone entity, according to tribunal documents.

Magellan Aerospace Middletown seeks to sphere the concern arsenic a going concern, support employment, and proceed lawsuit relationships, according to a declaration by the company's sole autarkic director, Michael Goldberg. The debtor volition see each alternatives, including a imaginable merchantability oregon different worth maximizing transactions.

The institution manufactures pitchy motor nacelle, exhaust components, and heat-resistant abstraction products for the commercial, military, and abstraction sectors. Among the products the institution has produced were vigor shields for NASA's Apollo and Space Shuttle abstraction programs.

Aerospace institution files bankruptcy

The Middletown, Ohio-based debtor filed its petition successful the U.S. Bankruptcy Court for the Southern District of Ohio, listing $10 cardinal to $50 cardinal successful assets and $50 cardinal to $100 cardinal successful debts, connected July 22.

Magellan Aerospace Middletown is 100% owned by Magellan Aerospace USA, which has not filed for bankruptcy. Mississauga, Ontario-based Magellan Aerospace Corporation is the genitor institution of Magellan Aerospace USA,

The debtor has nary secured indebtedness and nary nationalist debt. All of its obligations are unsecured debt, consisting of implicit $82 million.

Magellan Aerospace Middletown's largest unsecured creditors see The Reynolds Group, owed implicit $170,000; Mound Manufacturing Center inc., owed implicit $113,000; Fidelity 401K, owed implicit $87,000; Duke Energy, owed implicit $53,000; MSC Industrial Direct Co., owed implicit $49,000; CT Security Services, owed implicit $49,000; and Trimech Enterprise Solutions Corp., owed implicit $39,000.

Debtor reports nett losses

The debtor, which employs 109 workers, reported a nett nonaccomplishment of $8.5 cardinal connected astir $26.3 cardinal successful yearly gross successful 2025, and a nett nonaccomplishment of $2.8 cardinal connected $16.8 cardinal successful gross successful 2026 done June 30.

Magellan Aerospace Middletown's yearly gross has decreased year-on-year arsenic a effect of a winddown of contracts, opening successful 2020. The institution had secured pitchy exhaust systems contracts with Airbus connected its A340, A318, and A380, arsenic good arsenic the Boeing 747 and 767 aircrafts.